Abstract
This chapter reveals the problem of water allocation as a joint problem of hydrological interaction and externalities. The chapter describes the reason to use markets to allocate water. The chapter explains why most current methods of water allocation have a high transaction cost, and summarizes the problems that need to be solved to improve water allocation.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
CA Water Commission. https://cwc.ca.gov/Documents/2014/02_February/February2014_Agenda_Item_10_Attach_1_TransferProcess.pdf. Accessed 13 Mar 2016.
Garrick, D., & Aylward, B. (2012). Transaction costs and institutional performance in market-based environmental water allocation. Land Economics, 88(3), 535–560.
Garrick, D., Whitten, S. M., & Coggan, A. (2013). Understanding the evolution and performance of water markets and allocation policy: A transaction costs analysis framework. Ecological Economics, 88, 195–205.
Hardin, G. (1972). Exploring new ethics for survival. New York: Viking Press.
Lund, J. R. (1993). Transaction risk versus transaction costs in water transfers. Water Resources Research, 29(9), 3103–3107.
Ostrom, E. (2009). Social-ecological systems: A general framework for analyzing sustainability of social-ecological systems. Science, 325, 41–49.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing AG
About this chapter
Cite this chapter
Raffensperger, J.F., Milke, M.W. (2017). Water Allocation: The Joint Problem of Interaction and Transaction Cost. In: Smart Markets for Water Resources. Global Issues in Water Policy, vol 12. Springer, Cham. https://doi.org/10.1007/978-3-319-55008-4_1
Download citation
DOI: https://doi.org/10.1007/978-3-319-55008-4_1
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-55007-7
Online ISBN: 978-3-319-55008-4
eBook Packages: Earth and Environmental ScienceEarth and Environmental Science (R0)